Collateral Damage Occurs More Frequently During

question 12

Multiple Choice

Collateral damage occurs more frequently during:

• A) expansions when real assets need to be redeployed.
• B) recessions when discouraged workers neglect the capital stock.
• C) expansions when capital stock becomes outdated and useless.
• D) recessions when capital stock loses value through market forces.

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Definitions:

Other Things Equal

A Latin term (ceteris paribus) used in economics to signify examining the effect of one changing factor when all other factors remain constant.

Normative Economic Statement

An opinion or judgment that reflects values or what ought to be, rather than factual claims about what is.

Social Security

A government program designed to provide financial support to individuals during retirement, disability, or upon the death of a primary wage earner.

Government

The system or group of people governing an organized community, often a state, including institutions that establish and enforce public policies and laws.